Three simple steps to better outcomes for consumers’ health and the economy

The Australian Self Medication Industry (ASMI) has issued a trio
of recommendations to the Federal Government outlining key
mechanisms that will provide consumers with better access to
information and medicines to self-manage their health, provide
savings for the national healthcare system, and drive innovation,
research and growth in the Australian healthcare products
industry.

The recommendations form the basis of ASMI's pre-Budget
submission, which emphasises the high value of OTC medicines to the
Australian health system. Consumer research from Macquarie
University Centre for the Health Economy (MUCHE)1
estimates that if the eight largest categories of OTC medicines
were not available, there would be an estimated58 million
additional GP visits. The cost of this would be approximately$3.86
billion per year - $2.5 billion would be borne by Medicare, $1.04
billion by consumers and $360 million by health insurers.
This cost increases toover $10 billion per annum if the
indirectcosts of visiting a doctor (e.g. productivity losses) are
taken into account.

ASMI's three key recommendations can be summarised as:

Develop a 'switch' agenda and reform the Australian
scheduling policy framework. The down-scheduling
('switch') of medicines from prescription to over-the-counter (OTC)
with mandatory consultation with a pharmacist is a key enabler for
consumers to better self manage their health. A regulatory
environment favourable to switch would encourage innovation in OTC
medicines and also provide significant savings to the healthcare
system.

Reduce restrictions on direct-to-consumer
communications for Pharmacist Only (S3)
medicines. Schedule 3 (S3) medicines are used to
treat a range of everyday conditions (e.g. cold sores,
conjunctivitis, mouth ulcers), yet the current default regulatory
position disempowers consumers because 'they are not allowed to
know' about these medicines. ASMI proposes that these restrictions
be revised in the interest of raising consumer awareness of safe
and proven therapeutic products that the public already has access
to.

Introduce data/market exclusivity mechanisms to
stimulate research and innovation. Currently, a limiting
factor to investment in innovation is that non-prescription
medicines (both OTC and complementary) do not benefit from the same
level of intellectual property protection as prescription
medicines. Mechanisms such as data and market exclusivity provide
incentives for companies to invest in research and innovation.
Consumers win because this will expand the range of evidence-based
non-prescription medicines available for self-care.

ASMI believes that the adoption of these recommendations will
contribute to reducing Medicare and PBS costs and increase the
sustainability of the Australian healthcare system, while also
increasing consumer empowerment for improved health outcomes.